Loan Portfolio - As of June 30, 2025, commercial real estate loans amounted to $254.3 million, or 32.7% of total loans, while commercial loans totaled $104.0 million, or 13.4% of total loans [121]. - The NOLA division originated $179.6 million of one- to four-family residential mortgage loans held for sale for a gain on sale of approximately $7.3 million during the six months ended June 30, 2025 [121]. - Non-performing loans totaled $13.0 million, or 1.7% of total loans, as of June 30, 2025 [121]. - Total non-performing loans increased to $13.0 million at June 30, 2025, from $9.8 million at June 30, 2024, with 72.5% of the increase attributed to one- to four-family residential loans [164]. Financial Performance - Net interest income for the three months ended June 30, 2025, was $13.2 million, up from $10.9 million in the same period of 2024, reflecting a year-over-year increase of 20.5% [136]. - Net income for the three months ended June 30, 2025, was $879,000, compared to $849,000 in the same period of 2024, representing a 3.5% increase [136]. - Non-interest income decreased by $2.3 million, or 31.7%, to $4.9 million for the three months ended June 30, 2025, compared to $7.3 million in 2024 [136]. - Net interest income for the six months ended June 30, 2025, increased by $4.2 million (19.1%) to $26.0 million compared to $21.8 million for the same period in 2024 [175]. - Non-interest income for the six months ended June 30, 2025, totaled $9.3 million, a decrease of $2.7 million (22.1%) from $12.0 million for the same period in 2024 [180]. Asset and Deposit Growth - Total assets increased by $25.7 million, or 2.1%, to $1.25 billion at June 30, 2025, from $1.22 billion at December 31, 2024 [138]. - Total deposits rose by $24.1 million, or 3.0%, to $824.8 million at June 30, 2025, driven by a $20.5 million increase in interest-bearing deposits [143]. - Core deposits reached $469.3 million, or 56.9% of total deposits, at June 30, 2025 [122]. Capital and Liquidity - The Tier 1 leverage capital was $255.6 million, or 20.3% of adjusted assets, categorizing the company as well-capitalized [201]. - The company monitors its liquidity position daily and expects sufficient funds to meet current funding commitments [200]. - At June 30, 2025, the company had $66.5 million of outstanding borrowings from the Federal Home Loan Bank of Dallas, with the capacity to borrow an additional $371 million [197]. Operational Efficiency - The efficiency ratio improved to 91.44% for the three months ended June 30, 2025, compared to 92.49% in the same period of 2024 [136]. - The number of full-time equivalent employees decreased from 368 to 324, reflecting a reduction of 11.9% [136]. - Non-interest expense increased due to costs associated with operating as a public company, including hiring additional accounting personnel and increased compensation expenses [124]. Strategic Initiatives - The company plans to continue expanding its deposit and lending activities in the Baton Rouge and Lafayette markets, including the establishment of a branch office in Lafayette, Louisiana, opening in August 2025 [126]. - The company intends to grow assets organically while considering opportunistic acquisitions or branching in its market areas [126]. - The company aims to enhance its online banking infrastructure and fully digital bank ("Andi") to meet customer needs and expand its customer base [126]. Credit Quality - The company emphasizes maintaining strong asset quality through conservative loan underwriting practices [121]. - The allowance for credit losses as a percentage of non-performing loans was 47.2% at June 30, 2025, down from 59.0% at June 30, 2024 [178]. - Provision for credit losses for the six months ended June 30, 2025, was $838,000, compared to $520,000 for the same period in 2024, reflecting growth in loans held for investment [176].
FB Bancorp, Inc.(FBLA) - 2025 Q2 - Quarterly Report